Report: SACS issues warning to Alabama State University for multiple violations

Vice President of University Relations Danielle Kennedy told Alabama State University students last year that ASU was not responsible for the placement of these signs in Montgomery following the governor's release of a preliminary report alleging wrongdoing at the school. (File photo)

The citations included four conflicts of interest among ASU board of trustees members, a federal violation related to student-aid funds, financial instability, and inadequate financial and sponsored-research controls, according to the Advertiser.

The audit's preliminary findings alleged board member Marvin Wiggins and Elton Dean had improperly secured jobs at ASU for family and friends, though they denied those charges. It also alleged ASU mismanaged a Medicaid-research contract, costing the school more than $1 million.

As a result of the investigation, Moody's Investors Service has downgraded the school's bond rating, stating that the school's inability or unwillingness to significantly cut operating expenses was a sign of weak governance.